COMERICA INC /NEW/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - COMERICA INC /NEW/	cma-20170630ex992.htm
8-K - 8-K - COMERICA INC /NEW/	cma-20170630form8xk.htm

COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION, OR $1.13 PER SHARE ($1.15 ADJUSTED)

Compared to First Quarter 2017, Earnings Per Share Increased 2 Percent and

Adjusted Earnings Per Share Increased 13 Percent¹

Total Revenue Increased $35 Million, or 5 Percent, Compared to First Quarter 2017

Solid Second Quarter 2017 Average Loan Growth of $823 Million, or 2 Percent

Efficiency Ratio Improved to Below 59 Percent

DALLAS/July 18, 2017 -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2017 net income of $203 million, compared to $202 million for the first quarter 2017 and $104 million for the second quarter 2016. Earnings per diluted share were $1.13 for second quarter 2017 compared to $1.11 for first quarter 2017 and 58 cents for second quarter 2016. Excluding restructuring charges and tax benefits from employee stock transactions, adjusted earnings per diluted share was $1.15 for second quarter 2017 compared to $1.02 for first quarter 2017 and 77 cents for second quarter 2016.



(dollar amounts in millions, except per share data)	2nd Qtr '17				1st Qtr '17				2nd Qtr '16
Net interest income	$	500			$	470			$	445
Provision for credit losses	17				16				49
Noninterest income	276				271				268
Noninterest expenses (a)	457				457				518
Pre-tax income	302				268				146
Provision for income taxes	99			(b)	66			(b)	42
Net income	$	203			$	202			$	104

Net income attributable to common shares	$	202			$	200			$	103

Diluted income per common share	1.13				1.11				0.58

Average diluted shares (in millions)	179				180				177

Return on average assets (ROA)	1.14		%		1.14		%		0.59		%
Return on average common shareholders' equity (ROE)	10.28				10.42				5.47
Net interest margin	3.03				2.86				2.74
Efficiency ratio (c)	58.63				61.63				72.43

Common equity Tier 1 capital ratio (d)	11.51				11.55				10.49
Common equity ratio	11.18				10.87				10.79
Tangible common equity ratio (e)	10.37				10.07				9.98


(a)	Included restructuring charge of $14 million (5 cents per share, after tax) in the second quarter 2017, $11 million (4 cents per share, after tax) in the first quarter 2017 and $53 million (19 cents per share, after tax) in the second quarter 2016.


(b)	Included tax benefits of $5 million (3 cents per share) and $24 million (13 cents per share) from employee stock transactions for the second and first quarter 2017, respectively.


(c)	Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains (losses).


(d)	June 30, 2017 ratio is estimated.


(e)	See Reconciliation of Non-GAAP Financial Measures.

¹ Adjusted earnings per share represent earnings per diluted share excluding the impact of restructuring charges and tax benefits from

employee stock transactions. See Reconciliation of Non-GAAP Financial Measures.

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 2

“Quarter over quarter, our revenue increased 5 percent as we benefited meaningfully from increased interest rates as well as our relationship banking strategy, which is driving loan and fee growth," said Ralph W. Babb, Jr., chairman and chief executive officer. "In addition, credit quality continued to be strong. We remain focused on carefully managing expenses and are committed to fully delivering on the Growth in Efficiency and Revenue ("GEAR Up") initiatives. Relative to the first quarter, our earnings per share increased 2 percent, and increased 95 percent compared to the second quarter of last year. On an adjusted basis, earnings per share increased 13 percent over the first quarter and 49 percent from the second quarter 2016. This helped drive a double-digit ROE, an efficiency ratio below 59 percent and a 1.14 percent ROA for the quarter. Finally, we recently announced our 2017 capital plan, whereby we will continue to return excess capital to our shareholders with a 15 percent increase in our dividend, subject to board approval, and a nearly 40 percent increase in our share buyback relative to our 2016 plan. We believe we are well positioned for the future to further increase shareholder value."

Second Quarter 2017 Compared to First Quarter 2017

Average total loans increased $823 million to $48.7 billion.


•	Primarily reflected seasonal increases in Mortgage Banker Finance and National Dealer Services as well as growth in general Middle Market, partially offset by a decrease in Energy.

Average total deposits decreased $651 million to $57.1 billion.


•	Driven by a $933 million decrease in interest-bearing deposits, partially offset by a $282 million increase in noninterest-bearing deposits.


•	Average total deposits reflected decreases in general Middle Market, primarily driven by a seasonal decrease in Municipalities, and Energy, partially offset by an increase in Commercial Real Estate and a seasonal increase in Retail Bank.

Net interest income increased $30 million to $500 million.


•	Net interest margin increased 17 basis points to 3.03 percent.


•	Primarily due to a net benefit from higher short-term rates and an increase in average loans.

Provision for credit losses increased $1 million to $17 million.


•	Net credit-related charge-offs were $18 million, or 0.15 percent of average loans. Energy net credit-related charge-offs were $2 million.


•	Total criticized loans declined $144 million, including a $102 million decline in criticized Energy loans.


•	The allowance for loan losses was $705 million, or 1.43 percent of total loans. The reserve allocation for Energy was approximately 6 percent of loans in the Energy business line.

Noninterest income increased $5 million to $276 million.


•	Primarily reflected increases of $3 million in card fees, $2 million in commercial lending fees and $2 million in fiduciary income, partially offset by a $2 million net security loss. The increase in commercial lending fees resulted primarily from higher syndication agent fees.

Noninterest expenses were unchanged at $457 million.


•	Restructuring charges increased $3 million to $14 million.

•

Excluding restructuring charges, noninterest expenses decreased $3 million, primarily due to a decrease of $14 million in salaries and benefits expense, partially offset by an increase of $3 million in advertising expense from a seasonally low first quarter, increases of $3 million in operational losses and $2 million in software expense, as well as a $2 million favorable litigation-related settlement in first quarter 2017.


•	The decreases in salaries and benefits expense primarily reflected seasonal decreases in share-based compensation and payroll taxes, partially offset by the impact of merit increases and one additional day in the quarter.

Provision for income taxes increased $33 million to $99 million.


•	Primarily due to a $19 million decrease in tax benefits from employee stock transactions and the tax impact from the $34 million increase in pretax earnings.

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 3

Capital position remained solid at June 30, 2017.


•	Returned a total of $185 million to shareholders, including dividends and the repurchase of $139 million of common stock (2.0 million shares) under the equity repurchase program.


•	Dividend increased 13 percent to 26 cents per share.

•

As announced on June 28, 2017, the Federal Reserve did not object to Comerica's 2017 capital plan, which includes equity repurchases up to $605 million for the four-quarter period ending in the second quarter 2018. The timing and ultimate amount of equity repurchases will be subject to various factors, including the Company's financial performance and market conditions. In addition, at its meeting on July 25, 2017, Comerica's board of directors will consider increasing the quarterly dividend to 30 cents per share.

Second Quarter 2017 Compared to Second Quarter 2016

Average total loans decreased $746 million.


•	Excluding a $906 million decline in Energy, average loans increased $160 million, primarily reflecting an increase in National Dealer Services, partially offset by a decrease in Mortgage Banker Finance.

Average total deposits increased $607 million.


•	Reflected an increase of $2.4 billion in noninterest-bearing deposits, partially offset by a decrease of $1.8 billion in interest-bearing deposits.


•	Average total deposits primarily reflected increases in Commercial Real Estate and Retail Bank, partially offset by a decrease in Technology and Life Sciences.

Net interest income increased $55 million.


•	Primarily due to increases in short-term rates and Federal Reserve Bank deposits, partially offset by a decrease in average loans.

Provision for credit losses decreased $32 million.


•	Primarily reflected a decrease in Energy primarily due to a $783 million decline in criticized Energy loans and a $30 million decrease in net loan charge-offs.

Noninterest income increased $8 million.


•	Excluding a $3 million decrease in deferred compensation asset returns, noninterest income increased $11 million, primarily reflecting increases of $4 million in card fees, $3 million in warrant income and $2 million in service charges on deposit accounts.

Noninterest expenses decreased $61 million.

•

Excluding restructuring charges and deferred compensation expense, noninterest expenses decreased $19 million. This primarily reflected decreases of $25 million in salaries and benefits, largely driven by the GEAR Up initiative, $3 million in equipment expense, and smaller decreases in other noninterest expense categories, partially offset by an $8 million gain from the sale of leased assets in the second quarter of 2016, increases of $5 million in outside processing fees tied to revenue-generating activities and $2 million in operational losses.

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 4

Net Interest Income



(dollar amounts in millions)	2nd Qtr '17			1st Qtr '17			2nd Qtr '16
Net interest income	$	500		$	470		$	445

Net interest margin	3.03		%	2.86		%	2.74		%

Selected average balances:
Total earning assets	$	66,310		$	66,648		$	65,597
Total loans	48,723			47,900			49,469
Total investment securities	12,232			12,198			12,334
Federal Reserve Bank deposits	5,043			6,249			3,495


Total deposits	57,128			57,779			56,521
Total noninterest-bearing deposits	30,741			30,459			28,376
Medium- and long-term debt	5,161			5,157			5,072

Net interest income increased $30 million to $500 million in the second quarter 2017, compared to the first quarter 2017.


•	Interest on loans increased $32 million, reflecting higher loan yields (+$22 million), the impact of an increase in average loan balances (+$8 million), one additional day in the quarter (+$4 million) and other portfolio dynamics (+$2 million), partially offset by residual value adjustments to the leasing portfolio (-$4 million).


•	Interest on short-term investments increased $1 million due to increases in the Federal Funds rate (+4 million), partially offset by a decrease in average Federal Reserve Bank deposit balances (-$3 million).


•	Interest expense on debt increased $3 million primarily due to higher costs on variable rate debt tied to LIBOR.

The net interest margin of 3.03 percent increased 17 basis points compared to the first quarter 2017, due to higher loan yields (+13 basis points) and the impact from Federal Reserve Bank deposits (+6 basis points), partially offset by higher debt expense (-2 basis points).

Credit Quality

“Overall credit quality continued to be strong,” said Babb. “Criticized and nonaccrual loans, which were already at low levels, declined further, and net charge-offs were only 15 basis points. This, combined with our second quarter loan growth, drove a 4 basis point decline in the allowance for loan losses to 1.43 percent of total loans. The total reserve remained stable, resulting in a provision of $17 million."

"Energy loans at quarter-end remained at about 4 percent of our total loans," continued Babb. "The recent decline in energy prices is not expected to have a significant impact on our Energy portfolio as, overall, our customers have lowered operating costs, reduced leverage and are appropriately hedged. Criticized and nonaccrual loans as well as net charge-offs in the Energy line of business decreased again in the second quarter. This resulted in a decline in the reserve allocation to about 6 percent. The portfolio continues to perform well under the stress tests we have conducted.”

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 5



(dollar amounts in millions)	2nd Qtr '17			1st Qtr '17			2nd Qtr '16
Credit-related charge-offs	$	39		$	44		$	59
Recoveries	21			11			12
Net credit-related charge-offs	18			33			47
Net credit-related charge-offs/Average total loans	0.15		%	0.28		%	0.38		%

Provision for credit losses	$	17		$	16		$	49

Nonperforming loans	501			529			613
Nonperforming assets (NPAs)	519			545			635
NPAs/Total loans and foreclosed property	1.05		%	1.13		%	1.26		%

Loans past due 90 days or more and still accruing	$	30		$	26		$	35

Allowance for loan losses	705			708			729
Allowance for credit losses on lending-related commitments (a)	48			46			43
Total allowance for credit losses	753			754			772

Allowance for loan losses/Period-end total loans	1.43		%	1.47		%	1.45		%
Allowance for loan losses/Nonperforming loans	141			134			119


(a)	Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.


•	Energy business line loans were $2.0 billion, 4 percent of total loans, at June 30, 2017.


◦	Criticized Energy loans decreased $102 million, to $769 million.


◦	Energy net charge-offs were $2 million, compared to $13 million in the first quarter 2017.


◦	The Energy reserve allocation was approximately 6 percent of Energy outstandings at June 30, 2017.


•	Net charge-offs decreased $15 million to $18 million, or 0.15 percent of average loans, in the second quarter 2017, compared to $33 million, or 0.28 percent, in the first quarter 2017.


•	Criticized loans decreased $144 million to $2.5 billion at June 30, 2017, compared to $2.6 billion at March 31, 2017. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 6

Full-Year 2017 Outlook

Management expectations for 2017, compared to 2016, assuming a continuation of the current economic and low rate environment as well as contributions from the GEAR Up initiative of $30 million in revenue and $125 million in expense savings, are as follows:


•	Growth in average loans of 1 percent. Excluding Mortgage Banker Finance and Energy, loan growth of 3 percent, reflecting increases in the remaining lines of business.


•	Net interest income higher, reflecting the benefits from the rate increases in December 2016 ($85 million; no deposit beta), March 2017 ($65 million; no deposit beta) and June 2017 (more than $30 million for the remainder of 2017; 25 percent deposit beta), as well as loan growth and debt maturities.


•	Provision for credit losses lower, with continued solid performance of the overall portfolio.


◦	Provision of 20-25 basis points and net charge-offs to remain low (full-year 2017).


•	Noninterest income higher, with the execution of GEAR Up opportunities of $30 million, modest growth in treasury management and card fees, as well as wealth management products such as fiduciary and brokerage services.


◦	Increase of 4-6 percent.

•

Noninterest expenses lower, reflecting lower restructuring charges and an additional $125 million in GEAR Up savings, relative to 2016 GEAR Up savings of more than $25 million. The gains of $13 million in 2016 from early terminations of certain leveraged lease transactions are not expected to repeat. Noninterest expenses in the second half of 2017 will be impacted by items tied to revenue growth, such as advertising, incentive compensation and outside processing expenses; three additional days; seasonal and inflationary pressure leading to higher occupancy and benefits expenses; and, as expected, higher technology expenditures in cybersecurity, product innovation and to upgrade infrastructure to drive efficiencies.


◦	Restructuring charges of $40 to $50 million, compared to $93 million in 2016.


◦	Remaining noninterest expenses to decline about 1 percent.


◦	Decrease of about 4 percent including restructuring charges.


•	Income tax expense to approximate 31 percent of pre-tax income, reflecting 33 percent for the remaining quarters assuming no further tax impact from employee stock transactions.

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 7

Business Segments

Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. For a summary of business segment and geographic market quarterly results, see the Business Segment Financial Results and Market Segment Financial Results tables included later in this report. The financial results provided are based on the internal business unit and geographic market structures of Comerica and methodologies in effect at June 30, 2017. A discussion of business segment and geographic market year-to-date results will be included in Comerica's Second Quarter 2017 Form 10-Q.

Conference Call and Webcast

Comerica will host a conference call to review second quarter 2017 financial results at 7 a.m. CT Tuesday, July 18, 2017. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 12423001). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A replay of the Webcast can be accessed via Comerica's “Investor Relations” page at www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

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COMERICA REPORTS SECOND QUARTER 2017 NET INCOME OF $203 MILLION - 8

Forward-looking Statements

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on track,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, including the GEAR Up initiative, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of the economic benefits of the GEAR Up initiative, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including changes in interest rates; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers, in particular the energy industry; unfavorable developments concerning credit quality; operational difficulties, failure of technology infrastructure or information security incidents; changes in regulation or oversight; reliance on other companies to provide certain key components of business infrastructure; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; reductions in Comerica's credit rating; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; potential legislative, administrative or judicial changes or interpretations related to the tax treatment of corporations; changes in accounting standards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not all-inclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2016. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.



Media Contact:	Investor Contacts:
Yolanda Y. Walker	Darlene P. Persons
(214) 462-4443	(214) 462-6831

	Chelsea R. Smith
	(214) 462-6834



CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
Comerica Incorporated and Subsidiaries

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(in millions, except per share data)	2017			2017			2016			2017			2016
PER COMMON SHARE AND COMMON STOCK DATA
Diluted net income	$	1.13		$	1.11		$	0.58		$	2.24		$	0.92
Cash dividends declared	0.26			0.23			0.22			0.49			0.43

Average diluted shares (in thousands)	178,923			180,353			177,195			179,652			176,614
KEY RATIOS
Return on average common shareholders' equity	10.28		%	10.42		%	5.47		%	10.35		%	4.31		%
Return on average assets	1.14			1.14			0.59			1.14			0.47
Common equity tier 1 and tier 1 risk-based capital ratio (a)	11.51			11.55			10.49
Total risk-based capital ratio (a)	13.66			13.72			12.74
Leverage ratio (a)	10.80			10.67			10.39
Common equity ratio	11.18			10.87			10.79
Tangible common equity ratio (b)	10.37			10.07			9.98
AVERAGE BALANCES
Commercial loans	$	30,632		$	29,694		$	31,511		$	30,166		$	31,162
Real estate construction loans	2,910			2,958			2,429			2,934			2,272
Commercial mortgage loans	9,012			8,977			9,033			8,994			8,997
Lease financing	526			570			730			548			728
International loans	1,139			1,210			1,396			1,174			1,408
Residential mortgage loans	1,975			1,963			1,880			1,969			1,886
Consumer loans	2,529			2,528			2,490			2,528			2,478
Total loans	48,723			47,900			49,469			48,313			48,931

Earning assets	66,310			66,648			65,597			66,477			64,860
Total assets	71,318			71,819			70,668			71,567			69,948

Noninterest-bearing deposits	30,741			30,459			28,376			30,601			28,214
Interest-bearing deposits	26,387			27,320			28,145			26,851			28,401
Total deposits	57,128			57,779			56,521			57,452			56,615

Common shareholders' equity	7,933			7,865			7,654			7,899			7,643
NET INTEREST INCOME
Net interest income	$	500		$	470		$	445		$	970		$	892
Net interest margin (fully taxable equivalent)	3.03		%	2.86		%	2.74		%	2.95		%	2.78		%
CREDIT QUALITY
Total nonperforming assets	$	519		$	545		$	635

Loans past due 90 days or more and still accruing	30			26			35

Net credit-related charge-offs	18			33			47			$	51		$	105

Allowance for loan losses	705			708			729
Allowance for credit losses on lending-related commitments	48			46			43
Total allowance for credit losses	753			754			772

Allowance for loan losses as a percentage of total loans	1.43		%	1.47		%	1.45		%
Net credit-related charge-offs as a percentage of average total loans	0.15			0.28			0.38			0.21		%	0.43		%
Nonperforming assets as a percentage of total loans and foreclosed property	1.05			1.13			1.26
Allowance for loan losses as a percentage of total nonperforming loans	141			134			119


(a)	June 30, 2017 ratios are estimated.


(b)	See Reconciliation of Non-GAAP Financial Measures.



CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries

	June 30,			March 31,			December 31,			June 30,
(in millions, except share data)	2017			2017			2016			2016
	(unaudited)			(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	1,372		$	1,176		$	1,249		$	1,172

Interest-bearing deposits with banks	4,259			7,143			5,969			2,938
Other short-term investments	90			92			92			100

Investment securities available-for-sale	10,944			10,830			10,787			10,712
Investment securities held-to-maturity	1,430			1,508			1,582			1,807

Commercial loans	31,449			30,215			30,994			32,360
Real estate construction loans	2,857			2,930			2,869			2,553
Commercial mortgage loans	8,974			9,021			8,931			9,038
Lease financing	472			550			572			684
International loans	1,145			1,106			1,258			1,365
Residential mortgage loans	1,976			1,944			1,942			1,856
Consumer loans	2,535			2,537			2,522			2,524
Total loans	49,408			48,303			49,088			50,380
Less allowance for loan losses	(705		)	(708		)	(730		)	(729		)
Net loans	48,703			47,595			48,358			49,651

Premises and equipment	484			488			501			544
Accrued income and other assets	4,165			4,144			4,440			4,356
Total assets	$	71,447		$	72,976		$	72,978		$	71,280

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	31,210		$	31,892		$	31,540		$	28,559

Money market and interest-bearing checking deposits	20,952			22,177			22,556			22,539
Savings deposits	2,158			2,138			2,064			2,022
Customer certificates of deposit	2,438			2,597			2,806			3,230
Foreign office time deposits	23			59			19			24
Total interest-bearing deposits	25,571			26,971			27,445			27,815
Total deposits	56,781			58,863			58,985			56,374

Short-term borrowings	541			41			25			12
Accrued expenses and other liabilities	997			989			1,012			1,279
Medium- and long-term debt	5,143			5,153			5,160			5,921
Total liabilities	63,462			65,046			65,182			63,586

Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares	1,141			1,141			1,141			1,141
Capital surplus	2,110			2,106			2,135			2,165
Accumulated other comprehensive loss	(361		)	(379		)	(383		)	(295		)
Retained earnings	7,580			7,431			7,331			7,157
Less cost of common stock in treasury - 52,252,023 shares at 6/30/17, 50,732,795 shares at 3/31/17, 52,851,156 shares at 12/31/16 and 54,247,325 shares at 6/30/16	(2,485		)	(2,369		)	(2,428		)	(2,474		)
Total shareholders' equity	7,985			7,930			7,796			7,694
Total liabilities and shareholders' equity	$	71,447		$	72,976		$	72,978		$	71,280



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in millions, except per share data)	2017			2016			2017			2016
INTEREST INCOME
Interest and fees on loans	$	453		$	406		$	874		$	812
Interest on investment securities	62			62			124			124
Interest on short-term investments	14			5			27			9
Total interest income	529			473			1,025			945
INTEREST EXPENSE
Interest on deposits	9			10			18			20
Interest on medium- and long-term debt	20			18			37			33
Total interest expense	29			28			55			53
Net interest income	500			445			970			892
Provision for credit losses	17			49			33			197
Net interest income after provision for credit losses	483			396			937			695
NONINTEREST INCOME
Card fees	80			76			157			148
Service charges on deposit accounts	57			55			115			110
Fiduciary income	51			49			100			95
Commercial lending fees	22			22			42			42
Letter of credit fees	11			13			23			26
Bank-owned life insurance	9			9			19			18
Foreign exchange income	11			11			22			21
Brokerage fees	6			5			11			9
Net securities losses	(2		)	(1		)	(2		)	(3		)
Other noninterest income	31			29			60			46
Total noninterest income	276			268			547			512
NONINTEREST EXPENSES
Salaries and benefits expense	219			247			452			495
Outside processing fee expense	88			83			175			161
Net occupancy expense	38			39			76			77
Equipment expense	11			14			22			27
Restructuring charges	14			53			25			53
Software expense	31			30			60			59
FDIC insurance expense	12			14			25			25
Advertising expense	7			6			11			10
Litigation-related expense	—			—			(2		)	—
Other noninterest expenses	37			32			70			69
Total noninterest expenses	457			518			914			976
Income before income taxes	302			146			570			231
Provision for income taxes	99			42			165			67
NET INCOME	203			104			405			164
Less income allocated to participating securities	1			1			3			2
Net income attributable to common shares	$	202		$	103		$	402		$	162
Earnings per common share:
Basic	$	1.15		$	0.60		$	2.30		$	0.94
Diluted	1.13			0.58			2.24			0.92

Comprehensive income	221			137			427			298

Cash dividends declared on common stock	46			38			88			75
Cash dividends declared per common share	0.26			0.22			0.49			0.43



CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	Second			First			Fourth			Third		Second			Second Quarter 2017 Compared to:
	Quarter			Quarter			Quarter			Quarter		Quarter			First Quarter 2017					Second Quarter 2016
(in millions, except per share data)	2017			2017			2016			2016		2016			Amount			Percent		Amount			Percent
INTEREST INCOME
Interest and fees on loans	$	453		$	421		$	412		$	411	$	406		$	32		7	%	$	47		11	%
Interest on investment securities	62			62			62			61		62			—			—		—			—
Interest on short-term investments	14			13			10			8		5			1			2		9			n/m
Total interest income	529			496			484			480		473			33			7		56			12
INTEREST EXPENSE
Interest on deposits	9			9			10			10		10			—			—		(1		)	—
Interest on medium- and long-term debt	20			17			19			20		18			3			15		2			6
Total interest expense	29			26			29			30		28			3			11		1			5
Net interest income	500			470			455			450		445			30			6		55			12
Provision for credit losses	17			16			35			16		49			1			9		(32		)	(65	)
Net interest income after provision for credit losses	483			454			420			434		396			29			6		87			22
NONINTEREST INCOME
Card fees	80			77			79			76		76			3			5		4			6
Service charges on deposit accounts	57			58			54			55		55			(1		)	(1	)	2			4
Fiduciary income	51			49			48			47		49			2			2		2			3
Commercial lending fees	22			20			21			26		22			2			14		—			—
Letter of credit fees	11			12			12			12		13			(1		)	(7	)	(2		)	(12	)
Bank-owned life insurance	9			10			12			12		9			(1		)	(8	)	—			—
Foreign exchange income	11			11			11			10		11			—			—		—			—
Brokerage fees	6			5			5			5		5			1			2		1			24
Net securities losses	(2		)	—			(2		)	—		(1		)	(2		)	n/m		(1		)	n/m
Other noninterest income	31			29			27			29		29			2			—		2			2
Total noninterest income	276			271			267			272		268			5			2		8			3
NONINTEREST EXPENSES
Salaries and benefits expense	219			233			219			247		247			(14		)	(6	)	(28		)	(11	)
Outside processing fee expense	88			87			89			86		83			1			2		5			6
Net occupancy expense	38			38			40			40		39			—			—		(1		)	(4	)
Equipment expense	11			11			13			13		14			—			—		(3		)	(19	)
Restructuring charges	14			11			20			20		53			3			32		(39		)	(73	)
Software expense	31			29			29			31		30			2			4		1			—
FDIC insurance expense	12			13			15			14		14			(1		)	(9	)	(2		)	(9	)
Advertising expense	7			4			6			5		6			3			78		1			12
Litigation-related expense	—			(2		)	1			—		—			2			n/m		—			—
Other noninterest expenses	37			33			29			37		32			4			12		5			16
Total noninterest expenses	457			457			461			493		518			—			—		(61		)	(12	)
Income before income taxes	302			268			226			213		146			34			13		156			n/m
Provision for income taxes	99			66			62			64		42			33			50		57			n/m
NET INCOME	203			202			164			149		104			1			1		99			95
Less income allocated to participating securities	1			2			1			1		1			(1		)	(4	)	—			—
Net income attributable to common shares	$	202		$	200		$	163		$	148	$	103		$	2		1	%	$	99		96	%
Earnings per common share:
Basic	$	1.15		$	1.15		$	0.95		$	0.87	$	0.60		$	—		—	%	$	0.55		92	%
Diluted	1.13			1.11			0.92			0.84		0.58			0.02			2		0.55			95

Comprehensive income	221			206			73			152		137			15			7		84			61

Cash dividends declared on common stock	46			42			40			40		38			4			7		8			19
Cash dividends declared per common share	0.26			0.23			0.23			0.23		0.22			0.03			13		0.04			18

n/m - not meaningful



ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)
Comerica Incorporated and Subsidiaries

	2017						2016
(in millions)	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr

Balance at beginning of period	$	708		$	730		$	727		$	729		$	724

Loan charge-offs:
Commercial	34			38			37			24			48
Commercial mortgage	1			1			1			2			—
International	2			3			8			8			4
Consumer	2			2			2			1			2
Total loan charge-offs	39			44			48			35			54

Recoveries on loans previously charged-off:
Commercial	17			7			7			15			9
Commercial mortgage	3			2			3			3			2
Residential mortgage	—			—			1			—			—
Consumer	1			2			1			1			1
Total recoveries	21			11			12			19			12
Net loan charge-offs	18			33			36			16			42
Provision for loan losses	15			11			39			14			47
Balance at end of period	$	705		$	708		$	730		$	727		$	729

Allowance for loan losses as a percentage of total loans	1.43		%	1.47		%	1.49		%	1.48		%	1.45		%

Net loan charge-offs as a percentage of average total loans	0.15			0.28			0.29			0.13			0.34



ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)
Comerica Incorporated and Subsidiaries

	2017				2016
(in millions)	2nd Qtr		1st Qtr		4th Qtr			3rd Qtr		2nd Qtr

Balance at beginning of period	$	46	$	41	$	45		$	43	$	46
Charge-offs on lending-related commitments (a)	—		—		—			—		(5		)
Provision for credit losses on lending-related commitments	2		5		(4		)	2		2
Balance at end of period	$	48	$	46	$	41		$	45	$	43

Unfunded lending-related commitments sold	$	—	$	—	$	—		$	—	$	12


(a)	Charge-offs result from the sale of unfunded lending-related commitments.



NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries

	2017						2016
(in millions)	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr

SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial	$	379		$	400		$	445		$	508		$	482
Commercial mortgage	41			41			46			44			44
Lease financing	8			6			6			6			6
International	6			8			14			19			18
Total nonaccrual business loans	434			455			511			577			550
Retail loans:
Residential mortgage	36			39			39			23			26
Consumer:
Home equity	23			26			28			27			28
Other consumer	—			1			4			4			1
Total consumer	23			27			32			31			29
Total nonaccrual retail loans	59			66			71			54			55
Total nonaccrual loans	493			521			582			631			605
Reduced-rate loans	8			8			8			8			8
Total nonperforming loans	501			529			590			639			613
Foreclosed property	18			16			17			21			22
Total nonperforming assets	$	519		$	545		$	607		$	660		$	635

Nonperforming loans as a percentage of total loans	1.01		%	1.10		%	1.20		%	1.30		%	1.22		%
Nonperforming assets as a percentage of total loans and foreclosed property	1.05			1.13			1.24			1.34			1.26
Allowance for loan losses as a percentage of total nonperforming loans	141			134			124			114			119
Loans past due 90 days or more and still accruing	$	30		$	26		$	19		$	48		$	35

ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period	$	521		$	582		$	631		$	605		$	681
Loans transferred to nonaccrual (a)	54			104			60			105			107
Nonaccrual business loan gross charge-offs (b)	(37		)	(42		)	(46		)	(34		)	(52		)
Nonaccrual business loans sold	—			(8		)	(10		)	(2		)	(40		)
Payments/Other (c)	(45		)	(115		)	(53		)	(43		)	(91		)
Nonaccrual loans at end of period	$	493		$	521		$	582		$	631		$	605
(a) Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(b) Analysis of gross loan charge-offs:
Nonaccrual business loans	$	37		$	42		$	46		$	34		$	52
Consumer and residential mortgage loans	2			2			2			1			2
Total gross loan charge-offs	$	39		$	44		$	48		$	35		$	54
(c) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold.



ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	Six Months Ended
	June 30, 2017							June 30, 2016
	Average					Average		Average					Average
(dollar amounts in millions)	Balance			Interest		Rate (a)		Balance			Interest		Rate (a)

Commercial loans	$	30,166		$	539	3.62	%	$	31,162		$	500	3.24	%
Real estate construction loans	2,934			57		3.95		2,272			41		3.64
Commercial mortgage loans	8,994			170		3.81		8,997			158		3.53
Lease financing	548			6		2.01		728			10		2.66
International loans	1,174			23		3.88		1,408			26		3.64
Residential mortgage loans	1,969			35		3.59		1,886			36		3.85
Consumer loans	2,528			44		3.52		2,478			41		3.35
Total loans	48,313			874		3.65		48,931			812		3.34

Mortgage-backed securities (b)	9,321			100		2.16		9,341			102		2.21
Other investment securities	2,894			24		1.64		3,004			22		1.50
Total investment securities (b)	12,215			124		2.04		12,345			124		2.04

Interest-bearing deposits with banks	5,857			27		0.92		3,478			9		0.50
Other short-term investments	92			—		0.63		106			—		0.76
Total earning assets	66,477			1,025		3.11		64,860			945		2.94

Cash and due from banks	1,164							1,071
Allowance for loan losses	(733		)					(714		)
Accrued income and other assets	4,659							4,731
Total assets	$	71,567						$	69,948

Money market and interest-bearing checking deposits	$	22,066		14		0.13		$	22,989		13		0.11
Savings deposits	2,114			—		0.02		1,973			—		0.02
Customer certificates of deposit	2,621			4		0.37		3,399			7		0.40
Foreign office time deposits	50			—		0.55		40			—		0.34
Total interest-bearing deposits	26,851			18		0.14		28,401			20		0.14

Short-term borrowings	85			—		1.07		262			—		0.45
Medium- and long-term debt	5,159			37		1.39		4,083			33		1.62
Total interest-bearing sources	32,095			55		0.34		32,746			53		0.32

Noninterest-bearing deposits	30,601							28,214
Accrued expenses and other liabilities	972							1,345
Total shareholders' equity	7,899							7,643
Total liabilities and shareholders' equity	$	71,567						$	69,948

Net interest income/rate spread				$	970	2.77					$	892	2.62

Impact of net noninterest-bearing sources of funds						0.18							0.16
Net interest margin (as a percentage of average earning assets)						2.95	%						2.78	%


(a)	Fully taxable equivalent.


(b)	Includes investment securities available-for-sale and investment securities held-to-maturity.



ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	Three Months Ended
	June 30, 2017							March 31, 2017							June 30, 2016
	Average					Average		Average					Average		Average					Average
(dollar amounts in millions)	Balance			Interest		Rate (a)		Balance			Interest		Rate (a)		Balance			Interest		Rate (a)

Commercial loans	$	30,632		$	283	3.72	%	$	29,694		$	256	3.51	%	$	31,511		$	251	3.23	%
Real estate construction loans	2,910			29		4.08		2,958			28		3.82		2,429			22		3.62
Commercial mortgage loans	9,012			87		3.88		8,977			83		3.73		9,033			78		3.47
Lease financing	526			1		0.61		570			5		3.30		730			4		1.98
International loans	1,139			12		3.99		1,210			11		3.77		1,396			13		3.63
Residential mortgage loans	1,975			18		3.61		1,963			17		3.57		1,880			17		3.76
Consumer loans	2,529			23		3.62		2,528			21		3.42		2,490			21		3.37
Total loans	48,723			453		3.74		47,900			421		3.57		49,469			406		3.31

Mortgage-backed securities (b)	9,336			50		2.17		9,306			50		2.14		9,326			51		2.21
Other investment securities	2,896			12		1.69		2,892			12		1.60		3,008			11		1.50
Total investment securities (b)	12,232			62		2.06		12,198			62		2.02		12,334			62		2.03

Interest-bearing deposits with banks	5,263			14		1.03		6,458			13		0.83		3,690			5		0.50
Other short-term investments	92			—		0.58		92			—		0.67		104			—		0.58
Total earning assets	66,310			529		3.21		66,648			496		3.02		65,597			473		2.91

Cash and due from banks	1,148							1,180							1,074
Allowance for loan losses	(726		)					(741		)					(749		)
Accrued income and other assets	4,586							4,732							4,746
Total assets	$	71,318						$	71,819						$	70,668

Money market and interest-bearing checking deposits	$	21,661		7		0.13		$	22,477		7		0.12		$	22,785		6		0.11
Savings deposits	2,142			—		0.02		2,085			—		0.02		2,010			—		0.02
Customer certificates of deposit	2,527			2		0.36		2,715			2		0.38		3,320			4		0.40
Foreign office time deposits	57			—		0.60		43			—		0.49		30			—		0.35
Total interest-bearing deposits	26,387			9		0.15		27,320			9		0.14		28,145			10		0.14

Short-term borrowings	147			—		1.12		22			—		0.73		159			—		0.45
Medium- and long-term debt	5,161			20		1.48		5,157			17		1.30		5,072			18		1.42
Total interest-bearing sources	31,695			29		0.37		32,499			26		0.33		33,376			28		0.33

Noninterest-bearing deposits	30,741							30,459							28,376
Accrued expenses and other liabilities	949							996							1,262
Total shareholders' equity	7,933							7,865							7,654
Total liabilities and shareholders' equity	$	71,318						$	71,819						$	70,668

Net interest income/rate spread				$	500	2.84					$	470	2.69					$	445	2.58

Impact of net noninterest-bearing sources of funds						0.19							0.17							0.16
Net interest margin (as a percentage of average earning assets)						3.03	%						2.86	%						2.74	%


(a)	Fully taxable equivalent.


(b)	Includes investment securities available-for-sale and investment securities held-to-maturity.



CONSOLIDATED STATISTICAL DATA (unaudited)
Comerica Incorporated and Subsidiaries

	June 30,			March 31,			December 31,			September 30,			June 30,
(in millions, except per share data)	2017			2017			2016			2016			2016

Commercial loans:
Floor plan	$	4,346		$	4,191		$	4,269		$	3,778		$	4,120
Other	27,103			26,024			26,725			27,374			28,240
Total commercial loans	31,449			30,215			30,994			31,152			32,360
Real estate construction loans	2,857			2,930			2,869			2,743			2,553
Commercial mortgage loans	8,974			9,021			8,931			9,013			9,038
Lease financing	472			550			572			648			684
International loans	1,145			1,106			1,258			1,303			1,365
Residential mortgage loans	1,976			1,944			1,942			1,874			1,856
Consumer loans:
Home equity	1,796			1,790			1,800			1,792			1,779
Other consumer	739			747			722			749			745
Total consumer loans	2,535			2,537			2,522			2,541			2,524
Total loans	$	49,408		$	48,303		$	49,088		$	49,274		$	50,380

Goodwill	$	635		$	635		$	635		$	635		$	635
Core deposit intangible	7			7			7			8			9
Other intangibles	2			3			3			3			3

Common equity tier 1 capital (a)	7,705			7,667			7,540			7,378			7,346
Risk-weighted assets (a)	66,916			66,355			67,966			69,018			70,056

Common equity tier 1 and tier 1 risk-based capital ratio (a)	11.51		%	11.55		%	11.09		%	10.69		%	10.49		%
Total risk-based capital ratio (a)	13.66			13.72			13.27			12.84			12.74
Leverage ratio (a)	10.80			10.67			10.18			10.14			10.39
Common equity ratio	11.18			10.87			10.68			10.42			10.79
Tangible common equity ratio (b)	10.37			10.07			9.89			9.64			9.98

Common shareholders' equity per share of common stock	$	45.39		$	44.69		$	44.47		$	44.91		$	44.24
Tangible common equity per share of common stock (b)	41.73			41.05			40.79			41.15			40.52
Market value per share for the quarter:
High	75.30			75.00			70.44			47.81			47.55
Low	64.75			64.27			46.75			38.39			36.27
Close	73.24			68.58			68.11			47.32			41.13

Quarterly ratios:
Return on average common shareholders' equity	10.28		%	10.42		%	8.43		%	7.76		%	5.47		%
Return on average assets	1.14			1.14			0.88			0.82			0.59
Efficiency ratio (c)	58.63			61.63			63.58			68.15			72.43

Number of banking centers	439			458			458			473			473

Number of employees - full time equivalent	8,017			8,044			7,960			8,476			8,792


(a)	June 30, 2017 amounts and ratios are estimated.


(b)	See Reconciliation of Non-GAAP Financial Measures.


(c)	Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains (losses).



PARENT COMPANY ONLY BALANCE SHEETS (unaudited)
Comerica Incorporated

	June 30,			December 31,			June 30,
(in millions, except share data)	2017			2016			2016

ASSETS
Cash and due from subsidiary bank	$	894		$	761		$	8
Short-term investments with subsidiary bank	—			—			563
Other short-term investments	88			87			87
Investment in subsidiaries, principally banks	7,647			7,561			7,666
Premises and equipment	2			2			2
Other assets	128			150			163
Total assets	$	8,759		$	8,561		$	8,489

LIABILITIES AND SHAREHOLDERS' EQUITY
Medium- and long-term debt	$	607		$	604		$	632
Other liabilities	167			161			163
Total liabilities	774			765			795

Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares	1,141			1,141			1,141
Capital surplus	2,110			2,135			2,165
Accumulated other comprehensive loss	(361		)	(383		)	(295		)
Retained earnings	7,580			7,331			7,157
Less cost of common stock in treasury - 52,252,023 shares at 6/30/17, 52,851,156 shares at 12/31/16 and 54,247,325 shares at 6/30/16	(2,485		)	(2,428		)	(2,474		)
Total shareholders' equity	7,985			7,796			7,694
Total liabilities and shareholders' equity	$	8,759		$	8,561		$	8,489



CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries

								Accumulated
	Common Stock							Other									Total
	Shares				Capital			Comprehensive			Retained			Treasury			Shareholders'
(in millions, except per share data)	Outstanding		Amount		Surplus			Loss			Earnings			Stock			Equity

BALANCE AT DECEMBER 31, 2015	175.7		$	1,141	$	2,173		$	(429	)	$	7,084		$	(2,409	)	$	7,560
Net income	—		—		—			—			164			—			164
Other comprehensive income, net of tax	—		—		—			134			—			—			134
Cash dividends declared on common stock ($0.43 per share)	—		—		—			—			(75		)	—			(75		)
Purchase of common stock	(2.9	)	—		—			—			—			(114		)	(114		)
Net issuance of common stock under employee stock plans	1.1		—		(33		)	—			(16		)	49			—
Share-based compensation	—		—		25			—			—			—			25
BALANCE AT JUNE 30, 2016	173.9		$	1,141	$	2,165		$	(295	)	$	7,157		$	(2,474	)	$	7,694

BALANCE AT DECEMBER 31, 2016	175.3		$	1,141	$	2,135		$	(383	)	$	7,331		$	(2,428	)	$	7,796
Cumulative effect of change in accounting principle	—		—		3			—			(2		)	—			1
Net income	—		—		—			—			405			—			405
Other comprehensive income, net of tax	—		—		—			22			—			—			22
Cash dividends declared on common stock ($0.49 per share)	—		—		—			—			(88		)	—			(88		)
Purchase of common stock	(3.7	)	—		—			—			—			(257		)	(257		)
Net issuance of common stock under employee stock plans	2.8		—		(26		)	—			(20		)	128			82
Net issuance of common stock for warrants	1.5		—		(25		)	—			(46		)	71			—
Share-based compensation	—		—		24			—			—			—			24
Other	—		—		(1		)	—			—			1			—
BALANCE AT JUNE 30, 2017	175.9		$	1,141	$	2,110		$	(361	)	$	7,580		$	(2,485	)	$	7,985



BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries


(dollar amounts in millions)	Business			Retail			Wealth
Three Months Ended June 30, 2017	Bank			Bank			Management			Finance			Other			Total
Earnings summary:
Net interest income (expense)	$	336		$	162		$	42		$	(49	)	$	9		$	500
Provision for credit losses	12			5			(2		)	—			2			17
Noninterest income	152			48			64			10			2			276
Noninterest expenses	196			180			71			(1		)	11			457
Provision (benefit) for income taxes	100			9			14			(17		)	(7		)	99
Net income (loss)	$	180		$	16		$	23		$	(21	)	$	5		$	203
Net credit-related charge-offs (recoveries)	$	10		$	9		$	(1	)	$	—		$	—		$	18

Selected average balances:
Assets	$	38,853		$	6,487		$	5,432		$	13,936		$	6,610		$	71,318
Loans	37,580			5,865			5,278			—			—			48,723
Deposits	28,748			23,935			4,106			156			183			57,128

Statistical data:
Return on average assets (a)	1.85		%	0.27		%	1.76		%	N/M			N/M			1.14		%
Efficiency ratio (b)	40.19			84.79			66.44			N/M			N/M			58.63

	Business			Retail			Wealth
Three Months Ended March 31, 2017	Bank			Bank			Management			Finance			Other			Total
Earnings summary:
Net interest income (expense)	$	332		$	160		$	41		$	(71	)	$	8		$	470
Provision for credit losses	10			12			(1		)	—			(5		)	16
Noninterest income	144			48			64			11			4			271
Noninterest expenses	197			179			70			(1		)	12			457
Provision (benefit) for income taxes	92			6			13			(24		)	(21		)	66
Net income (loss)	$	177		$	11		$	23		$	(35	)	$	26		$	202
Net credit-related charge-offs (recoveries)	$	30		$	5		$	(2	)	$	—		$	—		$	33

Selected average balances:
Assets	$	38,091		$	6,525		$	5,406		$	13,944		$	7,853		$	71,819
Loans	36,754			5,895			5,251			—			—			47,900
Deposits	29,648			23,795			3,978			142			216			57,779

Statistical data:
Return on average assets (a)	1.89		%	0.18		%	1.71		%	N/M			N/M			1.14		%
Efficiency ratio (b)	41.33			86.00			67.17			N/M			N/M			61.63

	Business			Retail			Wealth
Three Months Ended June 30, 2016	Bank			Bank			Management			Finance			Other			Total
Earnings summary:
Net interest income (expense)	$	349		$	154		$	42		$	(105	)	$	5		$	445
Provision for credit losses	46			1			3			—			(1		)	49
Noninterest income	143			48			62			10			5			268
Noninterest expenses	221			205			81			—			11			518
Provision (benefit) for income taxes	74			(2		)	7			(36		)	(1		)	42
Net income (loss)	$	151		$	(2	)	$	13		$	(59	)	$	1		$	104
Net credit-related charge-offs (recoveries)	$	42		$	1		$	4		$	—		$	—		$	47

Selected average balances:
Assets	$	39,983		$	6,558		$	5,215		$	13,927		$	4,985		$	70,668
Loans	38,574			5,879			5,016			—			—			49,469
Deposits	28,441			23,546			4,213			50			271			56,521

Statistical data:
Return on average assets (a)	1.52		%	(0.04		)%	0.99		%	N/M			N/M			0.59		%
Efficiency ratio (b)	44.75			101.58			78.22			N/M			N/M			72.43


(a)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.


(b)	Noninterest expenses as a percentage of the sum of net interest income (fully taxable equivalent basis) and noninterest income excluding net securities gains (losses).

N/M - Not Meaningful



MARKET SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries


(dollar amounts in millions)										Other			Finance
Three Months Ended June 30, 2017	Michigan			California			Texas			Markets			& Other			Total
Earnings summary:
Net interest income (expense)	$	167		$	178		$	113		$	82		$	(40	)	$	500
Provision for credit losses	(2		)	24			(15		)	8			2			17
Noninterest income	81			45			33			105			12			276
Noninterest expenses	145			98			94			110			10			457
Provision (benefit) for income taxes	38			40			25			20			(24		)	99
Net income (loss)	$	67		$	61		$	42		$	49		$	(16	)	$	203
Net credit-related charge-offs (recoveries)	$	(1	)	$	8		$	5		$	6		$	—		$	18

Selected average balances:
Assets	$	13,371		$	18,446		$	10,481		$	8,474		$	20,546		$	71,318
Loans	12,712			18,194			10,015			7,802			—			48,723
Deposits	21,698			17,344			9,632			8,115			339			57,128

Statistical data:
Return on average assets (a)	1.20		%	1.33		%	1.52		%	2.24		%	N/M			1.14		%
Efficiency ratio (b)	58.14			43.82			64.37			58.45			N/M			58.63

										Other			Finance
Three Months Ended March 31, 2017	Michigan			California			Texas			Markets			& Other			Total
Earnings summary:
Net interest income (expense)	$	170		$	171		$	113		$	79		$	(63	)	$	470
Provision for credit losses	(2		)	21			(9		)	11			(5		)	16
Noninterest income	83			41			32			100			15			271
Noninterest expenses	150			96			94			106			11			457
Provision (benefit) for income taxes	37			36			22			16			(45		)	66
Net income (loss)	$	68		$	59		$	38		$	46		$	(9	)	$	202
Net credit-related charge-offs (recoveries)	$	(3	)	$	10		$	22		$	4		$	—		$	33

Selected average balances:
Assets	$	13,254		$	17,958		$	10,555		$	8,255		$	21,797		$	71,819
Loans	12,586			17,680			10,111			7,523			—			47,900
Deposits	22,150			17,243			10,113			7,915			358			57,779

Statistical data:
Return on average assets (a)	1.20		%	1.32		%	1.36		%	2.13		%	N/M			1.14		%
Efficiency ratio (b)	59.36			45.22			64.78			59.31			N/M			61.63

										Other			Finance
Three Months Ended June 30, 2016	Michigan			California			Texas			Markets			& Other			Total
Earnings summary:
Net interest income (expense)	$	164		$	176		$	117		$	88		$	(100	)	$	445
Provision for credit losses	3			18			32			(3		)	(1		)	49
Noninterest income	81			38			32			102			15			268
Noninterest expenses	159			120			113			115			11			518
Provision (benefit) for income taxes	28			27			2			22			(37		)	42
Net income (loss)	$	55		$	49		$	2		$	56		$	(58	)	$	104
Net credit-related charge-offs (recoveries)	$	—		$	17		$	31		$	(1	)	$	—		$	47

Selected average balances:
Assets	$	13,142		$	18,155		$	11,287		$	9,172		$	18,912		$	70,668
Loans	12,502			17,865			10,841			8,261			—			49,469
Deposits	21,519			16,967			10,052			7,662			321			56,521

Statistical data:
Return on average assets (a)	1.00		%	1.08		%	0.07		%	2.45		%	N/M			0.59		%
Efficiency ratio (b)	64.65			55.73			75.89			60.77			N/M			72.43


(a)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.


(b)	Noninterest expenses as a percentage of the sum of net interest income (fully taxable equivalent basis) and noninterest income excluding net securities gains (losses).

N/M - Not Meaningful



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Comerica Incorporated and Subsidiaries

Comerica believes these are meaningful measures, because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and our performance trends. Comerica believes adjusted earnings per share provides a greater understanding of ongoing operations and enhances comparability of results with prior periods. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.



	June 30,			March 31,			December 31,			September 30,			June 30,
(dollar amounts in millions)	2017			2017			2016			2016			2016

Tangible Common Equity Ratio:
Common shareholders' equity	$	7,985		$	7,930		$	7,796		$	7,727		$	7,694
Less:
Goodwill	635			635			635			635			635
Other intangible assets	9			10			10			11			12
Tangible common equity	$	7,341		$	7,285		$	7,151		$	7,081		$	7,047

Total assets	$	71,447		$	72,976		$	72,978		$	74,124		$	71,280
Less:
Goodwill	635			635			635			635			635
Other intangible assets	9			10			10			11			12
Tangible assets	$	70,803		$	72,331		$	72,333		$	73,478		$	70,633

Common equity ratio	11.18		%	10.87		%	10.68		%	10.42		%	10.79		%
Tangible common equity ratio	10.37			10.07			9.89			9.64			9.98

Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	7,985		$	7,930		$	7,796		$	7,727		$	7,694
Tangible common equity	7,341			7,285			7,151			7,081			7,047

Shares of common stock outstanding (in millions)	176			177			175			172			174

Common shareholders' equity per share of common stock	$	45.39		$	44.69		$	44.47		$	44.91		$	44.24
Tangible common equity per share of common stock	41.73			41.05			40.79			41.15			40.52

The tangible common equity ratio removes the effect of intangible assets from capital and the effect of intangible assets from total assets. Tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock.



	Three Months Ended
(dollar amounts in millions, except per share data)	June 30, 2017		March 31, 2017		June 30, 2016

Adjusted Earnings per Common Share:
Net income available to common shareholders	$	202	$	200	$	103
Add:
Restructuring charges, net of tax	9		7		34
Deduct:
Tax benefits from employee stock transactions	5		24		—
Adjusted net income available to common shareholders	$	206	$	183	$	137
Diluted average common shares	179		180		177
Diluted earnings per common share:
Reported	$	1.13	$	1.11	$	0.58
Adjusted	1.15		1.02		0.77

Adjusted earnings per share removes the after tax effect of restructuring charges and the tax benefits from employee stock transactions from net income available to common shareholders.

COMERICA INC /NEW/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 18, 2017

Attached files

COMERICA INC /NEW/ Reports